After ten years of talks, Kenya and the EU have finally implemented a trade agreement, allowing tax-free goods from the 27-member union to enter its domestic market after 25 years.
The EU-Kenya Economic Partnership Agreement (EPA) went into effect on Monday, according to Kenya’s Cabinet Secretary for Investment, Trade, and Industry, Rebecca Miano. The agreement maintains unimpeded access for Kenyan commodities to the European Union, except weaponry.
“The EU-Kenya EPA is one of the most ambitious agreements negotiated between the European Union and an African country in terms of promoting economic sustainability. It can serve as a template for other African countries, particularly those in Eastern Africa to adapt,” Ms Miano said in a statement.
“The agreement includes trade, economic and development cooperation and a chapter on trade and sustainable development which covers provisions on labour issues, gender equality, forestry and environment and the fight against climate change.”
Kenya’s mostly agricultural products, including fruits, vegetables, cut flowers, tea, and coffee, will continue to be able to enter the EU market duty-and quota-free thanks to the agreement, which is the first trade agreement between the bloc and a developing nation.
The agreement guarantees Kenya’s primarily agricultural products, including vegetables, cut flowers, fruits, tea, and coffee, to continue entering the bloc duty-and quota-free. It is the first trade agreement between the EU bloc and a developing nation.
Conversely, Nairobi has promised to liberalize trade after 25 years by progressively lowering import duties from Europe. This implies that mechanical, mineral, and chemical items coming from Europe would not be subject to duties, and EU investments will also receive incentives.
However, the EPA agreement contains protectionist language that prevents the EU from providing broad subsidies for Kenyan agricultural exports until there is a more in-depth policy discussion with Nairobi. The purpose of this section is to protect Kenya’s agriculture and food security from unfair competition from the European Union.
The EU benefits from trade with Kenya, as it imports Ksh150.08 billion ($1.2 billion) and sells items worth Ksh223.12 billion ($1.7 billion) to Kenya. Following the European Parliament’s approval on February 29, heads of state and government can now finalize the ratification procedure, bringing the EU-Kenya EPA into force.
A total of 366 members of the European Union voted in favour of the agreement, 86 against it, and 56 abstained. The document needed approval from Kenyan MPs in order to be put into effect.
The wording of the EU-East African Community agreement, which was previously signed in October 2014 and is currently blocked for approval by the individual parliaments, is extensively modified in this document. The introduction of provisions addressing climate change is the primary modification.